Entercom followed the perfect path to a profitable quarter during the last three months of 2012 – it increased revenues while decreasing expenses. And beneficial events, including the entrance of two companies in particular to the periphery of the radio business have CEO David Field excited about the future.
The two new companies with a business interest is ratings giant Nielsen, whose acquisition of Arbitron is pending; and telecom company Sprint, which is about to introduce FM radio into a number of its mobile products.
The company highlighted its results for Q4 2012 and for the full year:
Fourth Quarter 2012
* Net revenues for the quarter increased 7% to $102.1 million
* Station expenses increased 2% to $61.7 million
* Station operating income increased 16% to $40.4 million
* Adjusted EBITDA increased 17% to $35.3 million
* Adjusted net income per share increased 7% to $0.31
* Free cash flow increased 6% to $22.0 million
Full Year 2012
* Net revenues for the year increased 2% to $388.9 million
* Station expenses decreased 4% to $252.4 million
* Station operating income increased 14% to $136.6 million
* Adjusted EBITDA increased 15% to $115.9 million
* Adjusted net income per share decreased 19% to $0.79
* Free cash flow decreased to $63.1 million
Field stated, “Entercom finished 2012 with a solid fourth quarter as Revenues grew by 7% and Adjusted EBITDA increased by 17%. For the year, prudent cost management drove expenses down by 4% and enabled a 15% increase in Adjusted EBITDA on 2% Revenue growth. We enter 2013 with a strong balance sheet, an outstanding lineup of great brands and content, and a powerful array of emerging digital platforms. We are also highly enthused by a number of positive industry developments over the past few months which bolster the industry’s future prospects. Industry research continues to show robust radio listening levels and strong advertiser effectiveness, while recent announcements by Sprint, Nielsen and others reaffirm radio’s importance in today’s media landscape.”
Wells Fargo analyst Marci Ryvicker noted that Q1 2013 was pacing down somewhat, and once again, the smoking gun is in the hand of Congress – Entercom says an advertising flight booked by the US Army has been cancelled due to concerns about the sequestration battle.
